(and how does this relate to the capacity?)
Over 2021, Precursive has been describing how the traditional services delivery world is dead, with outdated methods of customer engagement and professional services metrics resulting in increased customer dissatisfaction and churn. In an outcomes era ruled by an established subscription economy, it has never been easier for your clients to leave you for someone else, when the value they expected to receive didn’t either occur in time or occur at all.
So what model is replacing services delivery in successful organizations, particularly in the world of SaaS, Software, Communications and Professional Services? The answer is High-Velocity Services Delivery.
High-Velocity Services Delivery
So what exactly is High-Velocity Services Delivery?! High-Velocity Services Delivery represents a new wave of software companies, companies whose Professional Services (PS) and Customer Success (CS) teams work collaboratively. In this environment, PS teams are focused on delivering repeatable implementation projects, differentiated by their resources being actively engaged across multiple projects (sometimes seven or more) concurrently. This type of High-Velocity Services Delivery is further categorized as being measured in weeks rather than months, reflective of an uneven distribution of effort model with resources having to balance their time rather than being exclusive to one engagement. Is this fast and flexible environment sounding familiar?
How is High-Velocity Services Delivery different from our traditional Professional Services Delivery?
As High-Velocity Services Delivery is defined within the repeatable process model, there are several key differentiators from a traditional model of Professional Services delivery:
1. Resource Assignment
In the traditional PS team resources are likely to be assigned 50-100% on a single project, with these engagements measured in months. This means that resources will likely work across only 1-3 projects at one time.
In the new model of software companies, PS teams deliver repeatable processes and therefore resources work in a fluid way. They are assigned to more than 3 projects at any one time, as they are reduced down into sub-tasks with the overall time allocated by each resource measured in weeks, not months.
See below an example of what the schedule looks like in Precursive, for a week working across multiple projects:
2. Static vs Flexible Resourcing
The traditional PS team will most likely have a static resource profile. The demands on them will be simpler as each resource is assigned to a single booking over a period of time, with such time most likely being allocated in monthly blocks.
In the new world of High-Velocity Service Delivery projects are broken down into tasks allowing for a more accurate view of the capacity of your team. The capacity is not assigned for the duration of the project but ebbs and flows with the changing demands presented during the project lifecycle. This allows a dynamic project plan to come to life, with resources being assigned across more than one project based on task requirements. This is flexible resourcing.
3. Methodology vs Repeatable Delivery
Traditional Service Delivery is likely to follow a similar methodology throughout the project as a detailed scope will be identified throughout the project engagement. These projects are often sold on time and materials rather than fixed-price due to the unknown variables.
High-Velocity Services are, you guessed it, repeatable! These projects are often fixed price, have a detailed scope on contract signature and as a result can benefit from detailed templated project plans.
4. Metrics & KPIs
Traditional PS teams are often targeted on their profitability, focusing on their cost and margin as project profitability is the main revenue stream of the company.
High-Velocity Service Delivery-based teams are diversifying, their dynamic structure allows for insight into additional metrics. In conjunction with monitoring margin, these service delivery teams will be focused on Customer Success metrics such as NPS, CSAT and TTV.
How can you avoid capacity crunches in High-Velocity Services Delivery?
In this environment where you have a high volumes of projects and tasks, there are greater levels of complexity and pressure because your teams are managing a wide range of activities and timelines are constantly shifting around. Throw into the mix multiple stakeholders on the customer side during an engagement and the need for a clear and precise overview of what is happening and when is crucial to success. The best teams make sure that they have:
A clear view of capacity and availability on a daily, weekly and monthly basis.
Project plans that stay in synch with resource plans and automatically update as tasks get adjusted and/or moved around.
An accurate forecast of future utilization so that new work can be allocated to the right people who won’t be overloaded.
Automated project creation based on templates driven by the products you sell - thus reducing the admin burden for your PMs and Services Teams.
The ability to map new tasks or projects to the best people based on their skills or knowledge, thus boosting productivity and ensuring that work gets done quickly and correctly.
Include contingency time for your team so that they can take care of admin, training or just have the right work-life balance.
Join us and beat the Capacity Crunch!
Learn how to ensure your company thrives in a High Velocity Service Delivery environment. Register now to engage with industry experts, Peter Lyon (Poppulo), Kimberly Simms (Planful) and Phil Davitt (Condeco) in our upcoming webinar on 26th October.
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